►Why Bitcoin. Refresh your mind. Open your mind. Or simply help a broke student! ☺

in #bitcoin7 years ago (edited)

A reference for everyone, why Bitcoin will rise even more.
Firstly, we all know that the fiat economy is not in the healthiest shape right now. Greece is broke, many currencies are dropping in value while Bitcoin is rising.
You may ask... but the same thing can happen to Bitcoin!

No! ... well technically Yes, but it is anti inflationary by design! The software is programmed like that. Every other fiat(Eur, USD...) is deflationary. Meaning, you actually loose value over time! Bitcoin to me is like digital Gold. It is a true store of value which cannot be lost unless people don't trust it anymore. In the early days mostly techies were playing with Bitcoin and trusting it. Nowadays more and more people get to know cryptocurrencies in general and use cases popping up everywhere.
Examples:

  1. On the swiss train ticket machine, its possible to pay with Bitcoin!
  2. More and more Bitcoin ATM's are getting installed! (just google it)
  3. Food delivery services like https://news.bitcoin.com/polands-largest-food-delivery-website-restaurants-starts-accepting-bitcoin/

Some more reasons:

1 https://trends.google.de/trends/explore?q=bitcoin

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This graphic shows the search interest of the word "Bitcoin" in the search engine Google over time.

2 https://coin.dance/volume

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Those graphics are showing the volume(amount of money) on various major Bitcoin buying/selling sites.

3 Financial instability -> Bitcoin rises

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We all know whats going on these days with Greece, Venezuela and Nigeria. The currencies are either dropping or people simply cannot access that much money anymore since the banks are disabling access to it like in Greece. Strange that in exactly those countries, when times are bad, the interest of Bitcoin rises right?

So as a tip from my side, even if you are kind of a broke college student like me. Save some 100$-200$ for Bitcoin and either buy if you want to be safe, or do margin trading if you want it to be more risky like me. Below you see a chart from the site http://plus500.com, which is an online broker allowing leveraged trading with Bitcoin. If you have 200$, you can trade as if you own a full Bitcoin on the current price. Meaning, that if the Bitcoin price rises +100$, you will gain +100$. But also, if the price drops about -100$, you will loose those 100$. Right now we had a correction and i am more than positive, that the price will recover in the following days / weeks.

Cheers!

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Bitcoin never was intended as a store of value, but as a payment system. The comparison with gold is foolish.

Gold truly is scarce, it is forged with the energy of exploding stars - no other element has its exact physical properties, no process known to man can reproduce it cheaply.

Bitcoin can be copied by anyone, creating another system with the exact same properties, but a different history - the ledger. Why should an entry in the ledger have value? There are two major reasons:

Intended Usage:
In order to be able to transfer ownership of real-world value, Bitcoins need to be purchased. The larger the value that is being exchanged via Bitcoins, the higher the price will need to be.

Speculation:
People observe a rise in value, so they speculate on a future rise in value. Their purchases drive the price up as well.

Neither of these things require the Bitcoin blockchain in particular, it merely has the first-mover advantage and the resulting higher adoption. The value "stored" in Bitcoin today can and will be moved into other cryptocurrencies, should the market decide to do so.

You named it, SHOULD the market decide. Do you really think the market looks like that right now?

I believe that if the main driver of value was usage as currency, the market would've already shifted towards other systems, given the current problems with network congestion and high fees.

This brings us to the next issue: When there will be a hardfork (possibly soon), there technically won't be a "Bitcoin" anymore, but rather "Bitcoin Classic" and "Bitcoin Unlimited". The market will have to decide which one to make dominant. Either way, value will be moved out of Bitcoin and into fiat and other cryptos, simply as a precautionary measure. I certainly know I will be doing that.

We don't know if they will split yet. But moving money out of Bitcoin before 1. August is certainly a smart move!

I have no experience with Plus500, but leveraged trading is also possible at cryptocurrency exchanges such Bitfinex, Poloniex and Kraken.

I suspect that these sites offer better rates, more currencies, as well as expedient deposits/withdrawals of non-fiat currency.

Indeed it is, but it's a pussy leverage ( x2). On plus500 its' up to x20. I prefer x10 though.
The major disadvantage of plus500 is that your value is stored in fiat. I will check bitmex soon.

I'm not so sure you would even want to trade something as volatile as cryptocurrency with a leverage of 10x or even 20x.

Bitfinex currently offers me leverage of 3.3x, which I find sufficient, especially for lower-value currencies like Litecoin.

For Litecoin yeah, since Litecoin has not that much use-case yet. In my eyes Bitcoin is till volatile yes, you are right with that. But after a correction like that its more likely to go up again then down.

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